A company had wage expense of $750,000 during a given period. Compute cash paid for wages during this period given the following data.

Question

Quizplus · Accepted Answer

The amount of wage expense incurred during the given period is $750,000. This may include wages payable for the current period as well as any previous periods. However, to determine the actual cash paid for wages during the period, we need to consider any changes in wages payable from the beginning to the end of the period. 
If wages payable increased during the period, it means not all of the wage expense was paid in cash. Similarly, if wages payable decreased during the period, it means the company paid more cash than the wage expense incurred. 
Since we don't have any information about the changes in wages payable, we cannot determine the exact amount of cash paid for wages during the period. 
However, based on the given options, the closest answer is C) $824,500, which is higher than the wage expense incurred. This suggests that the wages payable increased during the period and not all of the wage expense was paid in cash.

A Company Had Wage Expense of $750,000 During a Given